Advertising
Advertising

How to Launch a Business Without Spending a Dime

How to Launch a Business Without Spending a Dime
Money

The biggest mistake I see first time entrepreneurs make is that they spend too much money.

They rent an office or retail location, pay big incorporation fees, hire employees, and build an expensive website (just to name a few). And all before they’ve earned their first dollar!

Advertising

Each month their cash reserves get lower and lower while they struggle to make sales to cover their expenses. Eventually the fledgling business dies with no cash flow, leaving the owner hurt emotionally and financially.

Luckily, it is possible (and actually quite simple) to start up a business without spending a dime. The beauty of using this method is that you can test out a new business idea quickly and with zero risk. And instead of spending time negotiating leases or dealing with employees, you can spend 100% of your time on the most important thing: making that first sale!

Advertising

The first thing you’ve got to do is get past the idea of spending. Work out of your home or Starbucks on nights and weekends. Instead of hiring employees just get started with what you can do yourself, or ask friends for help. Don’t incorporate just yet, be a sole proprietorship. Don’t hire an expensive graphic artist to make your logo, stick with something simple…you get the idea.

You can spend money on all that stuff once you are bringing in revenue!

Advertising

Now to actually get started, here are 10 steps you can use to launch a new business, without spending a dime. The first five are logistical. The last five are all free ways to market your business (after all, the most important step is bringing in that first sale!)

  1. Get an EIN at the IRS website
    This one is specific to the USA, but all companies need an Employer Identification Number (EIN). You can apply for one online at the irs.gov in about 5 minutes by clicking here. List yourself as a sole proprietor for now.
  2. Setup Your Business Financials
    Get a free business checking account. This will allow you to keep your business’s money separate and track it (vitally important!). I like Washington Mutual’s free business checking. They will also give you a debit card to track your expenses (never use a credit card) which are currently zero! Then get a Paypal account and link it to your business account so you can accept payments.
  3. Choose a domain name
    The fastest ways to get eyeballs on your new business is the internet these days. Choose a domain name that is a keyword phrase your potential customers might type into a search engine. So if you are offering salsa lessons in Boston, you might choose “SalsaLessonsBoston.com”. The benefit of doing this is that you will most likely end up on the first page of Google results for that keyword phrase within a month or two. This will bring your customesr, and is much better than showing up on the first page for “John Smith’s Salsa Company” or something that no one ever searches for.
  4. Make a simple website
    The fastest way I know of to launch a website is using WordPress (wordpress.com or wordpress.org). If you don’t mind using a subdomain like “mydomain.wordpress.com” it’s free. But even if you want your own domain you can get one with WordPress pre-installed for about $70/year. WordPress comes with over 2500 “themes” to change the look and a great back end interface to edit the pages just like you’re in Microsoft word. LifeHack.org uses WordpPress as do many other popular sites.
  5. Set Your Prices
    Most first time entrepreneurs set their prices too low. People assume low prices mean low quality, and you are worth more. Give away your product or service to the first five customers free if you’d like (it will help built buzz and you can ask them for testimonials), but after that set your price in the top 1/3 of your industry. It’s always easier to lower them than to raise them.
  6. Start Marketing on CraigsList.com
    The next five steps are all free marketing. Start by making regular posts on Craigslist.com. This is a free classified website that attracts millions of viewers. You can get some traffic to your website instantly by making some posts here, and you should continue to repost them every few days.
  7. Start a Meetup.com Group
    Meetup.com helps people with similar interests get together. If a group exists in your area with potential customers, join it. Try to be invited as a guest speaker and offer value to members of the group (don’t pitch them). Just by making friends and helping out you will start to bring in business. If a MeetUp group for your topic doesn’t exist yet, that’s even better. Start one up! You’ll be viewed as the authority in the area.
  8. Post a Video to YouTube.com
    YouTube is a video sharing website, and it gets ridiculous amounts of traffic. It’s actually easier to make a video than you think, and it doesn’t have to be professional at all. You can record one with your digital camera, make a screen recording of your computer (even a powerpoint presentation) with software like Camtasia, or purchase a $20 webcam. Teach or show something useful, and include a link to your site at the end of the video. You will get traffic!
  9. Network
    Send an email to all your friends and family (and really everyone on your contact list) telling them about the business you just started. Put a note at the end asking them to forward the note to anyone they know who might be interested (and tell them about the free offer for the first five customers). You’ll not only reach your network, but you’ll reach your network’s network (an exponential difference). You should also get people’s business cards that you meet (far more effective than giving them since few people will write you back) and offer to help them.
  10. Write an Article and Give it Away!
    Even if you aren’t a writer, you can put together a great article. Think of something your potential customers might want to know. Then write a “top ten” list (e.g. the top ten beginner salsa moves) or a “ten step” format (e.g. the then steps to learning salsa basics). Contact the owners of a dozen different websites that your potential customers might visit, and see if they’d like to use your article for free. Include a link to your website at the bottom in the “About the Author” section.

Using this simple format you can launch a new business in about a month, and hopefully make your first sale. But the best part is, even if it doesn’t work, you’ve learned a priceless lesson and risked little or no money.

Advertising

Don’t spend a single red cent that isn’t absolutely required when launching a new business! See if your idea works first, and then spend AFTER you’ve made your first sale!

Brian Armstrong is the author of Breaking Free, which shows how to quit your job and start your first business! You can download three FREE chapters of the book and sign up for his FREE online course

More by this author

How To Instantly Feel Better When You Are Depressed 8 Essential Skills They Didn’t Teach You In School How To Make A Bunch Of New Friends In Any New City Tired in the morning and awake at night? Here is a REAL solution. How to Launch a Business Without Spending a Dime

Trending in Featured

1 How to Get out of a Rut: 12 Useful Ways to Get Unstuck 2 50 Ways to Increase Productivity and Achieve More in Less Time 3 How to Take Time for Yourself and Restore Your Energy 4 8 Simple Ways to Be a Better Listener 5 How to Stop Procrastinating: 11 Practical Ways for Procrastinators

Read Next

Advertising
Advertising
Advertising

Last Updated on November 5, 2020

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

Have you gotten into a rut before? Or are you in a rut right now?

You know you’re in a rut when you run out of ideas and inspiration. A rut can manifest as a productivity vacuum and be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. Is it possible to learn how to get out of a rut?

Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, or a student, you will find these useful. Here are 12 of my personal tips to get out of ruts:

1. Work on Small Tasks

When you are in a rut, tackle it by starting small. Clear away your smaller tasks that have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

Whenever I finish doing that, I generate positive momentum, which I bring forward to my work.

If you have a large long-term goal you can’t wait to get started on, break it down into smaller objectives first. This will help each piece feel manageable and help you feel like you’re moving closer to your goal.

You can learn more about goals vs objectives here.

Advertising

2. Take a Break From Your Work Desk

When you want to learn how to get out of a rut, get yourself away from your desk and go take a walk. Go to the bathroom, walk around the office, or go out and get a snack. According to research, your productivity is best when you work for 50 minutes to an hour and then take a 15-20 minute break[1].

Your mind may be too bogged down and will need some airing. By walking away from your computer, you may create extra space for new ideas that were hiding behind high stress levels.

3. Upgrade Yourself

Take the down time to upgrade your knowledge and skills. Go to a seminar, read up on a subject of interest, or start learning a new language. Or any of the 42 ways here to improve yourself.

The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college[2]. How’s that for inspiration?

4. Talk to a Friend

Talk to someone and get your mind off work for a while. Relying on a support system is a great way to work on self-care when you’re learning how to get out of a rut.

Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

5. Forget About Trying to Be Perfect

If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies. Perfectionism can lead you to fear failure, which can ultimate hinder you even more if you’re trying to find motivation to work on something new.

Advertising

If you allow your perfectionism to fade, soon, a little trickle of inspiration will come, and then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

Learn more about How Not to Let Perfectionism Secretly Screw You Up.

6. Paint a Vision to Work Towards

If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

Think about why you are doing this, and what you are doing it for. What is the ultimate goal or vision you have for your life?

Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action. You can use the power of visualization or even create a vision board if you like to have something to physically remind you of your goals.

7. Read a Book (or Blog)

The things we read are like food for our brain. If you are out of ideas, it’s time to feed your brain with great material.

Here’s a list of 40 books you can start off with. You can also stock your browser with only the feeds of high quality blogs and follow writers who inspire and motivate you. Find something that interests you and start reading.

Advertising

8. Have a Quick Nap

If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep[3].

Try a nap if you want to get out of a rut

    One Harvard study found that “whether they took long naps or short naps, participants showed significant improvement on three of the four tests in the study’s cognitive-assessment battery”[4].

    9. Remember Why You Are Doing This

    Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

    What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall your inspiration, and perhaps even journal about it to make it feel more tangible.

    10. Find Some Competition

    When we are learning how to get out of a rut, there’s nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

    Colleagues at work, competitors in the industry, competitors’ products and websites, and networking conventions can all inspire you to get a move on. However, don’t let this throw you back into your perfectionist tendencies or low self-esteem.

    Advertising

    11. Go Exercise

    Since you are not making headway at work, you might as well spend the time getting into shape and increasing dopamine levels. Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, or whatever type of exercise helps you start to feel better.

    As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

    If you need ideas for a quick workout, check out the video below:

    12. Take a Few Vacation Days

    If you are stuck in a rut, it’s usually a sign that you have been working too long and too hard. It’s time to get a break.

    Beyond the quick tips above, arrange one or two days to take off from work. Don’t check your (work) emails or do anything work-related. Relax, do your favorite activities, and spend time with family members. You will return to your work recharged and ready to start.

    Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest.

    More Tips to Help You Get out of a Rut

    Featured photo credit: Ashkan Forouzani via unsplash.com

    Reference

    Read Next